Sponge iron lose grounds; buyers prefer to wait and watch

Sponge iron lose ground despite the shortage of raw material like Iron Ore and Coal. Prices have fallen by Rs 500-700/MT across major cities on sluggish demand from the end users.

Despite Iron Ore mining ban in Karnataka and low supply from Orissa, sponge prices have kept on falling over the last week.Most of the sponge iron manufacturers have cut their production in order to minimize losses.

Sponge iron at Raipur is being quoted at Rs 21,400/MT which was previously quoted at Rs 22,800/MT few weeks back.Whereas, prices at Rourkela are being quoted at Rs 19,800/MT.

We do not see prices recovering very soon, said a sponge iron trader based in Raipur.Buyers have stopped their purchases and wait for markets to take a direction, he added.